Can You Invest in Ripple Pre-IPO? Everything You Need to Know.

For more than a year Ripple has been the subject of speculation that it will go public, and its valuation has jumped quite a bit recently. A November 2025 funding round valued the fintech company, which issues the XRP (CRYPTO: XRP) and Ripple USD cryptocurrencies, at $40 billion. In March, Bloomberg reported that Ripple was buying back shares from investors and employees at a $50 billion valuation.

If you were hoping to invest in Ripple before an initial public offering (IPO), buying one of the company's cryptocurrencies may seem like the best solution. However, there's a big difference between owning XRP or Ripple USD and buying Ripple stock.

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The difference between Ripple, XRP, and Ripple USD

Ripple is a private crypto company that provides cross-border payment solutions and institutional digital asset custody technology, and it has also recently expanded its offerings with some major acquisitions. It completed the acquisition of Hidden Road, a multi-asset prime broker, last October, and rebranded it as Ripple Prime. In addition, last year it acquired GTreasury, a treasury management platform that it then rebranded as Ripple Treasury.

XRP is a cryptocurrency launched by Ripple in 2012. One of the main uses of XRP is as a bridge currency on Ripple Payments, the company's payments network. Banks can use XRP for international transactions involving multiple currencies. Instead of maintaining accounts with foreign currencies, a bank can convert cross-border payments to XRP, and the recipient can convert it to their own currency. It's worth noting that financial institutions don't need to use XRP to use Ripple Payments, and adoption among Ripple's banking partners has been limited.

When you buy XRP, you own a crypto token that serves a role in one of Ripple's financial services. It doesn't give you any exposure to Ripple itself or ownership in the company, like buying shares would. XRP's performance also won't necessarily match Ripple's. Case in point, while Ripple's private valuation has increased by 25% since November, XRP's public valuation has dropped by 36% (through May 6).

You don't get any Ripple exposure with Ripple USD either, and it doesn't have growth potential as XRP does. Since Ripple USD is a stablecoin, it's designed to maintain a $1 value at all times. It's useful for payments, but it's not an investment.

What's the timeline on a Ripple IPO?

Ripple's management hasn't indicated any plans to go public. After the November funding round, President Monica Long told Bloomberg that the company doesn't have an IPO timeline. In January, she reiterated that Ripple plans to stay private.

Chief Executive Officer Brad Garlinghouse expressed the same sentiment at XRP Las Vegas 2026. He said Ripple isn't in a hurry to go public and pointed out that recent IPOs for BitGo Holdings and Gemini Space Station "haven't done particularly well."

While plans can change, the most likely scenario is that we don't see a Ripple IPO anytime soon. Management seems to prefer operating as a private company. That's understandable, especially considering Ripple only wrapped up a five-year legal battle with the Securities and Exchange Commission last August.

Ripple's share buybacks from investors and employees are another indicator that a public offering isn't on the horizon. The company isn't in need of outside funding at the moment, and if that changes, it could always hold another private funding round.

How to invest in Ripple pre-IPO

The only way to invest in Ripple is on the private secondary market, but this requires being an accredited investor. Retail investors can't buy shares in Ripple right now.

Even if you qualify to invest in Ripple on the secondary market, it's risky. Private shares have far less liquidity, and since Ripple isn't required to disclose financial information, it's hard for investors to properly value the company. Ripple's own board member and former chief technology officer, David Schwartz, recently cautioned against investing in the company, writing on X that "you can buy Ripple stock on the secondary market if you qualify under US law. But you probably shouldn't."

If you're interested in Ripple primarily because of XRP, you could buy the cryptocurrency instead. Just remember that Ripple and XRP are separate investments. They have a connection through Ripple Payments, but XRP isn't the same as private shares of Ripple.

Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends XRP. The Motley Fool has a disclosure policy.